Published 8:00 pm, Thursday, April 28, 2011

NORWALK

Staff Reports

A 46-year-old Weston man pleaded guilty to mortgage fraud and tax evasion charges Friday at U.S. District Court in New Haven.

Genaro Hathaway, 46, of Weston, pleaded guilty to two counts of conspiracy and one count of tax evasion. He faces a maximum of 65 years in prison and a fine of at least $616,547.93. He will be sentenced July 18.

Hathaway's husband, Steven J. Kottage, pleaded guilty April 21 to two counts of conspiracy for his role in the fraud scheme, and he faces 60 years in federal prison for the charges. Kottage is currently serving a prison sentence on charges stemming from dragging a Weston Police officer alongside his car.

The third co-conspirator in the case, 53-year-old Milford resident Mary Jean Durso, was sentenced to six months of home confinement and three years of probation on March 9.

According to the 11-count indictment from the U.S. Attorney's Office, which includes bank and wire fraud, conspiracy and tax evasion and filing false tax returns, Kottage and Hathaway filed false information in order to obtain loans from Wells Fargo Home Mortgage and H&R Block Home Mortgage for a home in Fire Island, N.Y.

The banks lost more than $500,000 due to the fraud scheme, according to the indictment.

Durso, Kottage and Hathaway also filed false loan information to Washington Mutual to refinance a condominium in Hillsboro Beach, Fla., according to the indictment.

The indictment further alleges that Hathaway and Durso engaged in tax fraud.